U.S Mortgage Rates Inch Up as Applications Surge

Mortgage rates found support in the week ending 16thJanuary, rising by 1 basis point to 3.65%. In the week ending 9thJanuary, mortgage rates had fallen by 8 basis points to 3.64%.

In spite of the weekly increase, mortgage rates remained close to 14-week lows. 30-year rates also continued to hold close to levels last seen in early November of 2016, according to figures released byFreddie Mac.

Compared to this time last year, 30-year fixed rates were down by 80 basis points.

30-year fixed rates are also down by 129 basis points since November 2018s most recent peak of 4.94%.

Economic Data from the Week

Economic data was on the lighter side through the 1sthalf of the week, with December inflation figures and the NY Empire State Manufacturing Index numbers in focus.

While the annual rate of core inflation held steady at 2.3%, consumer prices rose at a softer pace in December, pinning back yields.

Mixed sentiment towards the phase 1 trade agreement ahead of Wednesdays signing had also weighed on risk appetite at the start of the week.

It was ultimately risk-on, however, with the signing of the trade agreement and details on tariffs supporting riskier assets.

Easing tensions between the U.S and Iran also supported U.S Treasury yields, delivering the upside in mortgage rates.

Read the full article:

https://www.fxempire.com/news/article/u-s-mortgage-rates-inch-up-as-applications-surge-626855